Indonesia’s Chance to Unlock Its Youth Potential Is Fast Closing
- Some regions will reach end of dividend faster in 2030s
- Indonesia is struggling to become high-income nation by 2045
Southeast Asia’s biggest economy has been counting on its demographic dividend to escape the “middle-income trap” and achieve its goal of turning into a high-income country by 2045.
Photographer: Dimas Ardian/BloombergThe gains Indonesia could reap from having a young and growing population could come to an end by 2041 or sooner — just a few years shy of its goal of becoming a high-income nation.
The window for Indonesia to enjoy its so-called “demographic bonus” — the boost in economic growth potential from having a larger share of working-age people — will likely close by 2041, the nation’s statistics agency said on Wednesday. Some of the most populous provinces are predicted to see their working age population fall even earlier, with Central Java, East Java, Bali and West Sumatra reaching the peak of their demographic bonus between 2030-2034.